Hello All HR Professionals,
I have 3 questions regarding Employee Referral Program in an organization. Can anyone help answer these questions? Is there any kind of legal aspect to it?
1. Should Contractors get Referral Bonus in the company?
2. How the referral bonus should work country-wise? E.g. if US Employee wants to refer a candidate for a UK branch, how will that work?
3. Should the hiring manager be a part of the referral bonus?

From India, Pune
Management Consultancy
+1 Other


There is no legal aspect to the Employee Referral Programme. It is purely a voluntary programme. Your queries are answered at seriatim below:

1. If the provisions of Employee Referral Programme provides for it, then it can be considered so. But basically the scope of the programme includes only employees. Once you bring in the contractors, the professional recruiting agencies whom you engage can ask for a finger in the pie which is unwarranted.

2. The purpose is to reward employees who are making worthwhile referrals, so even if such recommendations cut across countries or continents that should not be a disabling factor.

3. The hiring manager is paid salary & incentives to do his job of attracting talents. So including the hiring manager will be an additional expenses and is not called for.

From India, Mumbai
Deepa Kadam
Thank you very much for your detailed answers to each query. Regards, Deepa
From India, Pune
Deepa Kadam
One more question regarding Point number 2 in the Referral Program (for employees across the border):
Which currency will be applicable for referring acorss the border? Eg. If UK Employee is referring a candidate for a US branch then should he get a referral bonus in GBP or USD?

From India, Pune
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